The International Monetary Fund (IMF) warned this Thursday that if agricultural protests continue in Europe, prices could rise, although this is not expected to have a major impact on the region’s economic growth.
“If the protests continue for some time, it could have a more significant impact on prices,” IMF spokeswoman Julie Kozak said at a news conference in Washington.
However, because the agricultural sector in most European countries is “relatively small” in terms of gross domestic product (GDP), the institute expects any economic impact “to be small.”
For three weeks, farmers from several European countries such as France, Spain, Portugal or Greece protested, among other things, against the consequences of the bureaucracy of the Common Agricultural Policy (CAP), environmental requirements for production and fair prices at origin. .
The main criticism is the Green Deal for Europe, with which the European Union (EU) wants to achieve climate neutrality by 2050.
Earlier this month, IMF Director Kristalina Georgieva warned of economic consequences if governments give in to protests.
According to the IMF’s latest economic forecast, the eurozone economy will grow by an average of 0.9% (three-tenths less than forecast last October) this year and 1.7% in 2025 (one-tenth less).
Growth in countries that use the euro is below expectations for the global economy (3.1% this year), driven by the US and China.
Author: Lusa
Source: CM Jornal
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